Prices rise to 41-year high

The latest data from the Office of National Statistics (ONS) on how fast prices are rising has been released. Inflation reached a 41-year high, with price rises of 11.1% in the year to October 2022. It is up on the 10.1% figure recorded in September, with energy bills being the main factor driving up the cost of living, followed by food prices. The Ukraine war plus other factors such as the cost of raw materials have also contributed. 

Key points:

• It is the highest UK inflation for 41 years, a figure not seen since October 1981
• Prices are rising even faster for the poorest households – by more than 16% for the families who spend the least, according to the BBC.
• Prices have caused households and companies to cut spending, which has led to expectations the UK will enter recession at the end of the year.

This comes a day before new Chancellor Jeremy Hunt is due to announce tax changes and spending cuts in the Autumn statement.